India Secures Second Place in WEF Business Environment Ranking
India has been ranked as the world's second-most attractive business environment for multinational corporations, according to the World Economic Forum's latest Chief Economists' Outlook for May 2026. The survey highlights India's growing appeal amid rising geopolitical tensions and global economic uncertainty.
In a survey of 38 chief economists from leading international organizations, 56% of respondents ranked India among the top three most attractive business environments for the next 12 months. Only the United States scored higher, with 65% support. South-East Asia followed at 50%, while Europe and China received 44% and 35%, respectively.
Key Factors Behind India's Strong Position
The report attributed India's strong position to its combination of market size, economic growth, and policy support. It said New Delhi had expanded market access and maintained an active economic policy approach while continuing to create new opportunities for trade and investment.
The WEF noted that India's pursuit of new trade agreements, deeper international economic integration, and growing embrace of free trade were key factors underpinning investor confidence.
Geopolitical Risks Reshape Investment Decisions
According to the report, multinational companies are reassessing investment destinations as geopolitical risks reshape traditional perceptions of economic attractiveness. Businesses are increasingly prioritizing resilient markets capable of withstanding global uncertainty, with scale, strategic flexibility, and supply-chain positioning becoming more important than headline growth alone.
The United States retained the top position due to its deep capital markets, large consumer base, and continued investment in data centers and artificial intelligence infrastructure. India, meanwhile, stood out among emerging markets for balancing economic potential with policy support.
The findings were released at a time when supply-chain realignments, conflicts, and mounting inflationary pressures are disrupting the global economy. Despite these challenges, India was identified as a leading destination for multinational corporations, ranking ahead of Europe, China, and other major regions.
